Strata Depreciation Report Requirements in British Columbia

The British Columbia government is introducing new regulations to improve the maintenance and repair of common property in strata corporations. The key changes include requiring depreciation reports every five years, instead of the previous three-year cycle, and mandating that these reports be obtained from qualified professionals.

• Existing strata corporations with five or more strata lots must obtain depreciation reports on a five-year cycle, effective July 1, 2024.
• All strata corporations must obtain depreciation reports from qualified professionals, including engineers, certified reserve planners, architects, appraisers, and quantity surveyors, effective July 1, 2025.
• Owner-developers of new strata corporations with five or more strata lots will be required to contribute a minimum of $5,000, plus $200 per strata lot, up to a maximum of $30,000, towards the cost of the first depreciation report, effective July 1, 2027.
• Strata corporations with four or fewer lots will continue to be exempt from the depreciation report requirement.

• Strata corporations formed between July 1, 2024, and June 30, 2027: Must obtain depreciation reports within two years of the first annual general meeting and every five years thereafter.
• Strata corporations formed on or after July 1, 2027: Must obtain depreciation reports within 18 months of the first annual general meeting and every five years thereafter.
• Strata corporations without depreciation reports or with reports received prior to December 31, 2020: Must obtain reports by July 1, 2026, if located in Metro Vancouver, Fraser Valley, or the Capital Regional District (excluding the Gulf Islands and other islands), or by July 1, 2027, if located in other areas of the province.